Phillip Securities has initiated coverage of Singapore’s Sabana Shari’ah Compliant REIT (SABA.SI), which owns industrial properties, at buy with a target price of $1.11.
Phillip said it expects Sabana’s assets to be revalued at higher valuations this year, due to a buoyant industrial property market, and an increase in its book value may be a catalyst for the REIT’s share price to re-rate.
Phillip said it expects Sabana’s assets to be revalued at higher valuations this year, due to a buoyant industrial property market, and an increase in its book value may be a catalyst for the REIT’s share price to re-rate.
“With Sabana REIT set forth to cross $1 billion portfolio by the year end, further upsides are expected in the second half to drive up the share price,” Phillip said in a report.
Sabana also has ample capacity to raise more debt before hitting 34% gearing, which allows the trust to take advantage of acquisition growth, Phillip said.
At 9:38 a.m., shares of Sabana were 0.53% higher at $0.94, but have fallen 3.6% since the start of the year.
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